discoverIE Group Insiders Added UK£667.7k Of Stock To Their Holdings

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in discoverIE Group plc's (LON:DSCV) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 1 warning sign about discoverIE Group. View them for free.

discoverIE Group Insider Transactions Over The Last Year

The Group Chief Executive & Executive Director Nicholas Jefferies made the biggest insider purchase in the last 12 months. That single transaction was for UK£200k worth of shares at a price of UK£6.33 each. That means that an insider was happy to buy shares at above the current price of UK£6.25. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months discoverIE Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for discoverIE Group

discoverIE Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

discoverIE Group Insiders Bought Stock Recently

Over the last quarter, discoverIE Group insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£142k worth of shares. This is a positive in our book as it implies some confidence.

Does discoverIE Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.9% of discoverIE Group shares, worth about UK£12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The discoverIE Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest discoverIE Group insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for discoverIE Group and we suggest you have a look.

But note: discoverIE Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.